Fuel Supplier Convicted of 34 Felonies in Scheme to Defraud Navy and USCG

USS Thomas Hudner seen arriving in Boston is among the ships cited in the indictment (USNS)

A federal jury in West Palm Beach, Florida, found a local fuel supplier guilty of orchestrating a scheme to defraud the U.S. of over $4.5 million. Spanning a period between 2022 and 2024, the court convicted Jasen Butler, age 37, of 34 felonies related to submitting altered and fake invoices to the U.S. Navy and Coast Guard.

According to the evidence at trial, Butler, the owner of Independent Marine Oil Services, submitted dozens of falsified documents, such as wire transfer memos and invoices to multiple U.S. warships, including the USS Patriot, between August 2022 and January 2024. The indictment lists incidents involving the minesweeper USS Patriot, the Arleigh-Burke class guided missile destroyer USS Thomas Hudner, the USNS Puerto Rico, and the Coast Guard cutter Douglas Denman.

The Department of Justice says the ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia. Butler was working through the SEA Card Program, which allows U.S. vessels to purchase critical fuel to conduct military operations around the world.

In addition, they asserted that after Butler came under scrutiny by Navy officials, he continued his scheme by concealing his identity. Butler, they alleged, adopted a false name and feigned employment by a fictitious fuel division of a different company.

The court found him guilty on charges including wire fraud, money laundering, and forgery. Butler received over $4.5 million in payments for phony expenses that Butler had not incurred, and used the millions in fraud proceeds to personally enrich himself and purchase multiple multi-million dollar properties in Florida and Colorado.

After the verdict, U.S. District Judge Donald M. Middlebrooks immediately remanded Butler into custody at the United States’ request. Sentencing is set for April 8, 2026. Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering.